Man Pleads Guilty to $32.5M North Carolina Ponzi Scheme

By KevinMarcilliat, In White Collar Crimes, 0 Comments

A former resident of North Carolina pled guilty last week to federal charges in connection with a $32.5 million Ponzi scheme. The federal money laundering charges were brought against the 60-year-old man for his role in inducing investments with false statements and fraudulent misrepresentations through the business Queen Shoals Consultants.

The Florida man used to live in North Carolina but moved to St. Augustine, Florida, recently. The former NC man received $1.9 million from other man for his role in Queen Shoals Consultants. He entered the guilty plea for the white collar crime charges in Charlotte last week. The man faces up to 10 years in prison. His sentencing has not yet been scheduled. The other man was sentenced to 22 years in prison for his role in the Ponzi scheme.

The allegations against the man claim he started the Queen Shoals Consultants in 2007 with a business partner. Federal investigators say that the business partner ran the Ponzi scheme, while the other man sought investors for the fake consulting group. While the Miami Herald reported that North Carolina man and the other man never spoke about the operation being a Ponzi scheme, the lies told to induce clients to invest $28.5 million with the firm demonstrated enough evidence of fraud and money laundering.

Source: Miami Herald, “Man pleads guilty to role in NC Ponzi scheme,” 2/11/2012